Recent content by FIRE'd@51

Actually, a couple filing a joint return would pay no Federal taxes on taxable income up to 79K (the top of the 12% bracket) if all that income came from LT capital gains (and qualified dividends). Add the 24K standard deduction and their gross income could actually be 103K and they would still...

Why do you say 12-18 months? Form 19b-4 was filed by NYSE Arca (not Graystone) and typically should be approved or denied within 90 days since NYSE Arca is a Self-Regulatory Organization.

I think everyone needs to take a deep breath here. The SEC has NOT yet approved an ETF that actually holds bitcoins - it has approved an ETF that holds bitcoin FUTURES (which have been trading for a couple of years now). Note that GBTC, a very liquid exchange-traded bitcoin trust (which...

Just to give a frame of reference, the Nov 1, SPX 3500 puts have a delta of 0.01, which indicates that the options market is attaching only about a 1% probability of the market being 3500 or less at expiration.

Can you access this function in Fidelity Active Trader Pro? Also, can you roll credit spreads with this function? I have always done this manually on the trade ticket. What you describe sounds useful.

I sure would like to hear more details about this story. I doubt that someone who worked at GS for 32 years (and was probably a partner and/or managing director} years was ignorant about personal finance. I would hope your friend continues to try to find out the details of his investments.

That's because it is equivalent to selling a naked call.

Whether you buy the stock and buy a put or buy a call and invest the cash, you are purchasing insurance against the stock being below 400 at the options expiration in December 2023. There is a cost for this insurance, which you have offset in your example by investing the cash in high-grade...

Another alternative would be to simply buy the Dec 2023 put struck at 400 to protect your SPY position. Typically you will find much better liquidity in OTM puts than deep ITM calls, so my guess is you will probably overpay for the 400 call relative to buying the 400 put. Also, you should be...

Although I still have the bulk of my assets at VG, about 5 years ago I switched my IRA options trading to Fidelity. Fidelity has a much better trading platform (Active Trader Pro) and much less onerous "margin" requirements for spread trading in an IRA. Commissions for online options trading...

How do you know those people are holding those dollars? More likely they are re-investing them in other assets (e.g. stocks, other currencies, etc.)

Presumably, the fact that you're not getting the dividend is factored into the LEAP price. You could always just hold the SPY and buy the 0.3 delta one-year puts every six months. This would give you the same return pattern as the SWAN, and you wouldn't have to pay the 0.5% expense ratio...

Delta-neutral means the option plus a hedging portfolio is independent of the price of the underlying, i.e., the combination of the two has a net delta of zero. This is the only way to isolate and capture the mis-pricing of an option.

Not necessarily. One can still make a lot of money buying overpriced call options if the underlying stock or index goes up. IOW, if someone is a good stock picker or market timer, the alpha he generates from his stock-forecasting ability could be significantly greater than the negative alpha...

Program trading also includes the purchase or sale of entire portfolios at a particular point in time (e.g. at the market close). This is very useful for mutual funds and pension funds that want to buy indexes. It also keeps futures such as those on the S&P 500 trading very close to fair value...